The Turn

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Small cap and value stocks have surged over the last few months in a welcoming indication that we’re experiencing the turn in asset class leadership I wrote about last June. As an all-value investor, I’m certainly feeling better about my portfolio and I hope you are too.

Because of the huge swing in stock prices in the first and second quarter of the year, our rebalancing discipline resulted in enhanced portfolio returns, particularly for clients with a fixed income allocation. Our team was able to sell short-term bond fund positions at stable prices and buy stock funds at much lower prices.

We could speculate as to the reasons for the recent shift in market leadership from large growth stocks to small value stocks, both in the US and foreign markets, but that’s a game we’re not interested in playing. We know such speculation by other advisory firms is usually an attempt to project insight that really doesn’t exist (certainly not in the short-term).

We also can’t assure you that this trend will continue. Looking back, we can now see that the mega-corporations have benefitted greatly by the global pandemic and small businesses in general have struggled mightily during the lockdowns.

Rest assured that whatever turn our economy takes, the Equius team is prepared to follow our investment discipline using the same principles and techniques we’ve committed to for the past 27 years. They have served our clients well and we’re confident they’ll continue to provide a superior investment experience going forward. 

Equius Partners, Inc. is a Registered Investment Advisor.

Past performance is not a guarantee of future results. The data and information set forth herein are provided for educational purposes only and should not be considered tax, legal or investment advice; a solicitation to buy or sell securities; or an opinion on specific situations – as individual circumstances vary. There is no guarantee an investing strategy will be successful. Investing involves risks, including possible loss of principal. Diversification does not eliminate risk, including the risk of market or systemic loss.

Please consider the investment objectives, risks, and charges and expenses of any mutual fund and read the prospectus carefully before investing. Indexes are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.

© 2023 Equius Partners, Inc.

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